Neither really do anything much for me. The first because you cant see its face really. The second is OOF. Also again up the ISO so you dont need to use the lower shutter speed. Also by using a higher ISO you wont need to use the flash as much.

Great idea, do you know of an ISO range that is usually pretty good for indoor portrait shooting? Or do I just need to kinda fiddle with it til I get it?

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My answer is always going to play around with the settings. You can always restore the original settings. But the more you play with the settings the more you will learn about what you like and dislike. If you have a program like picasa or photo shop or gimp you can see what the settings were on the pictures.